LN08-ch8-LectureProblems-AFM101s10

LN08-ch8-LectureProblems-AFM101s10 - Chapter 8 Exercise 1...

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Chapter 8 – Exercise 1 (1 of 6) Claremont Sweet Shoppe orders and sells toffees by the pound. On July 1 st , Claremont had 500 pounds of toffee on hand which was purchased at $1.00 per pound. Claremont made a number of purchases of toffee during July: Date of purchase Pounds Cost per Pound Total Cost July 5 1,000 $1.10 $1,100 July 9 1,200 $1.15 $1,380 July 20 1,200 $1.20 $1,440 July 30 1,500 $1.25 $1,875 During July, the company sold 3,800 pounds of toffee at $1.45 per pound.
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Chapter 8 – Exercise 1 (2 of 6) Part A: Compute the number of pounds of toffee on hand on July 31 st , and the cost of goods available for sale for the month of July. SOLUTION:
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Chapter 8 – Exercise 1 (3 of 6) Part B: Assume that the company uses the weighted-average inventory method. Compute its ending inventory on July 31 st , the cost of goods sold during July, and the company’s gross profit during July. SOLUTION:
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(4 of 6) Part C: Assume that the company uses FIFO. Compute its ending inventory on July 31 st , the cost of goods sold during July, and the company’s gross profit during July. SOLUTION:
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This note was uploaded on 06/17/2011 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

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LN08-ch8-LectureProblems-AFM101s10 - Chapter 8 Exercise 1...

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